Correlation Between SECURE ELECTRONIC and AIRTEL AFRICA
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and AIRTEL AFRICA PLC, you can compare the effects of market volatilities on SECURE ELECTRONIC and AIRTEL AFRICA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SECURE ELECTRONIC with a short position of AIRTEL AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and AIRTEL AFRICA.
Diversification Opportunities for SECURE ELECTRONIC and AIRTEL AFRICA
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SECURE and AIRTEL is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and AIRTEL AFRICA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRTEL AFRICA PLC and SECURE ELECTRONIC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with AIRTEL AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRTEL AFRICA PLC has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and AIRTEL AFRICA go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and AIRTEL AFRICA
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to generate 3.88 times more return on investment than AIRTEL AFRICA. However, SECURE ELECTRONIC is 3.88 times more volatile than AIRTEL AFRICA PLC. It trades about 0.17 of its potential returns per unit of risk. AIRTEL AFRICA PLC is currently generating about 0.09 per unit of risk. If you would invest 57.00 in SECURE ELECTRONIC TECHNOLOGY on April 30, 2025 and sell it today you would earn a total of 32.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 56.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. AIRTEL AFRICA PLC
Performance |
| Timeline |
| SECURE ELECTRONIC |
| AIRTEL AFRICA PLC |
SECURE ELECTRONIC and AIRTEL AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and AIRTEL AFRICA
The main advantage of trading using opposite SECURE ELECTRONIC and AIRTEL AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, AIRTEL AFRICA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AIRTEL AFRICA will offset losses from the drop in AIRTEL AFRICA's long position.| SECURE ELECTRONIC vs. GUINEA INSURANCE PLC | SECURE ELECTRONIC vs. ALUMINIUM EXTRUSION IND | SECURE ELECTRONIC vs. VITAFOAM NIGERIA PLC | SECURE ELECTRONIC vs. SFS REAL ESTATE |
| AIRTEL AFRICA vs. WEMA BANK PLC | AIRTEL AFRICA vs. UNIVERSAL INSURANCE PANY | AIRTEL AFRICA vs. ABBEY MORTGAGE BANK | AIRTEL AFRICA vs. CONSOLIDATED HALLMARK INSURANCE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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